Tag Archives: Corporate

New Payroll Services

Allan | July 5, 2011 - 11:38 am

As an added value to our clients, Better Tax Services has decided to partner with NEBS PAYweb.ca for all your payroll needs.

Why Choose NEBS PAYweb.ca for your Payroll Services?

  • Established in 1967, NEBS PAYweb.ca is Canada’s longest serving and most trusted payroll specialist allowing us to excel in customer satisfaction and customer support. PAYweb has been trusted by Canadian companies from coast-to-coast for over 40 years. Their clients range in size from 1 employee to 1000 employees. They can accommodate businesses with employees across Canada.
  • View the NEBS PAYweb.ca flash presentation for an overview. 

NEBS PAYweb.ca is a perfect payroll solution to:

  • Reduce cost
  • Increase efficiency
  • Ensure compliance
  • Increase accuracy
  • Increase accessibility

NEBS PAYweb.ca Payroll Services offers:

  • Online inputs
  • Real time calculation
  • Remote printing – Reports & Stubs
  • e-Stubs
  • Unlimited Accruals
  • Customer Satisfaction

Find out how much money you can save a month! Get a free, no obligation quote and let NEBS PAYweb.ca become your payroll experts!

Patrice Edouard
Payroll Specialist
1-877-461-5006 Ext 2472
pedouard@nebs.com

*Ask Patrice about his special offers and don’t forget to mention that you’ve been referred by Better Tax Services!

Posted in Small Business | Tagged , | 1 Comment

What are the Corporate Tax Rates in Canada?

Allan | January 6, 2011 - 10:04 am
Corporate taxes are based on the business net income and not the sales. The Federal small business corporate tax rate is 11% for up to $500,000 in net income. The General rate is 16.5% for net taxable income above $500,000.
In addition, each Province has its own tax rates which vary from Province to province as per the table below:

2011 Corporate Income Tax Rates
  General Small Business Business Limit
Federal 16.5% 11% $500,000
Alberta 10% 3% $500,000
BC 10% 2.5% $500,000
Manitoba 12% 0% $400,000
New Brunswick 11% / 10% 5% $500,000
Newfoundland & Labrador 14% 4% $500,000
Nova Scotia 16% 5% $400,000
Northwest Territories 11.5% 4% $500,000
Nunavut 12% 4% $500,000
Ontario 12%/11.5% 4.5% $500,000
Prince Edward Island 16% 1% $500,000
Québec 11.9% 8% $500,000
Saskatchewan 12% 4.5% $500,000
Yukon 15% 4% $400,000
Personal income tax needs to be paid on the money you withdraw from your corporation. You can withdraw money in the form of a salary or a dividend. Salary, an expense to your business, is tax deductible for your corporate tax. Dividends are paid out of your company’s after tax net earnings.

Both salaries and dividends are taxed at different rates on a personal level.

Posted in Small Business, Tax Tips | Tagged , , | Leave a comment

Salary or Dividends?

Allan | October 27, 2010 - 1:17 pm

If you own a small corporation in Canada, you have the choice to pay yourself via salary or dividends. Recently, there was an interesting article published in the Globe and Mail discussing this very topic. In many cases, one would argue that dividends pose more tax advantages to business owners than salary.

Here is the link to the article: Skipping the RRSP, and paying yourself in dividends

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My Business Is Incorporated; Do I Still Need To File A Personal Income Tax Return?

Allan | June 28, 2010 - 9:35 pm

Taxes can be confusing when it comes to separating your personal income from your business income. When your business is incorporated, it becomes an entity itself, capable of being taxed, sued, and all other things that can be done to an individual. Do you still have to file a personal return, even though your corporation’s income is already taxed?

The short answer is: yes. In Canada, filing a tax return on income from your corporation does not excuse you from filing a tax return on your personal income. Of course, there are many caveats to this simple rule.

First, the type of corporation you run determines the type of return you must file. If you are a non-profit corporation, organized for charitable purposes, your corporation is not subject to the same tax consequences as a for-profit business, although your personal tax liability may be the same. Further, your tax consequences will be different if you are organized as a private corporation or a public corporation. In Canada, a Canadian-controlled private corporation enjoys a significantly larger tax advantage than foreign-owned corporations. Be sure to talk to your accountant about possible tax advantages from types of incorporation when you file your corporate papers.

Further, the area in which you do business will affect your tax liability and initial start-up costs. If you are doing business only in Montreal as a sole proprietorship, it makes sense to incorporate provincially, which is less expensive. However, if you are doing business in other provinces and Montreal is only your home base, then you should consider federal incorporation.

Another consideration when filing your taxes is your corporate structure. Your corporation’s income may or may not be tied to your personal income, depending on how you pay yourself. If you are an employee of the company, your salary will be taxed under your personal income tax, and the corporation’s income will be taxed under the corporate return. It pays to discuss with an accountant the options you have for financial setup when you incorporate. You can save significant money by paying yourself in certain ways.

However your corporation is set up, you should always file your personal income on a T1 return and your corporate income on a T2 return.

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How to set up a Business in Canada?

Allan | June 21, 2010 - 6:50 pm

Chances are high that you plan to kick off a new business in Canada or why else would you be here? The idea of starting a business in Canada sounds interesting. To be able to give a tangible shape to your idea, it is important that you undergo a neat study of the Canadian market in general and Canadian mercantile law in particular. A budding entrepreneur must pick up an excellent grasp over Canadian business structure, Canadian taxation system and the Canadian custom and review agency (CCRA). This detailed research guarantees business success to a great extent.

There are two jurisdictions under which a business in Canada can be incorporated. First is under the Provincial law and second is under the Federal law. If you plan to limit your business operations to a particular Canadian province, you will have to adhere to the Canadian provincial law. Likewise if you plan to spread your business all across the country, you must hold on to the Canadian Federal law.

Once you are through with the initial stages of inception of a business idea, formulating a business plan and selecting a business name, you need to register the decided company name. It is mandatory to register the business name for almost all types of businesses in Canada. Following this, you will have to arrange for the finances. If you finance the business from your pocket altogether, what better? If however, you need some external source of financing, you may have to consult leading Canadian lending banks to obtain the same. Thereafter you will be required to obtain the necessary legal business license depending on the type of business that you plan to establish. Barring some exceptions, GST/HST registration is mandatory in Canada if sales exceed $30,000 within a calendar year. Last but not the least; you will have to arrange for business insurances in order to protect your business from risks and uncertainties.

The initial stages of setting up a business do seem overwhelming; however with the support of the cooperative Canadian Government, it soon becomes relatively easy.

Posted in Small Business | Tagged , , | 1 Comment